Importing motor vehicles into Australia has never been more difficult.
Logistics and customs complications have caused headaches for importers and distributors.
It is an industry-wide issue that calls for innovation, intelligence and ingenuity to solve.
Mazda Australia recently asked three logistics providers to develop an effective ocean and air solution to send vehicles from Thailand to Australia.
Leading logistics and supply chain solutions provider C.H. Robinson used its innovative Customs Intelligence Platform and team of local experts to find the answer.
The company developed an advanced supply chain solution for Mazda’s ocean and air freight and customs brokerage – achieving substantial savings and efficiency gains.
The C.H. Robinson Oceania team streamlined tasks, locked in ocean rates, and reclassified customs entries, attaining considerable savings on ocean imports from Thailand to Australia, and duty refunds identified through the reclassification of imported products.
Mazda Australia Director of Customer Support Aldo Schepis said Mazda originally selected C.H. Robinson for its air and customs brokerage services, but soon discovered the logistics giant had more to offer.
“From an air freight transport perspective C.H. Robinson offered the most competitive cost option, customs brokerage reporting and administrative capabilities that thoroughly impressed us,” Schepis said.
“C.H. Robinson has provided Mazda with the ability to prioritise which containers are coming into our facility, helping minimise demurrage and storage costs.
“By managing container prioritisation, we can contain costs, which can be quite extensive if container priority is mismanaged, and we can also better monitor the efficiency of our operation.”
C.H. Robinson implemented its Customs Intelligence Platform and C.H. Robinson Automotive Vertical Head Oceania Paul Morcom said it was this game-changing technology that allowed the logistics innovator to streamline Mazda’s supply chain operations, reduce costs, and improve delivery times.
C.H. Robinson found the company had been paying duty on parts that were actually qualified as duty-free items and eligible for a refund. The distinction for this reclassification was based on how the parts were being used once imported into the country.
Ultimately, reclassifying the parts helped Mazda minimise future customs fees on those same types of products.
Cost savings and smoother customs operations
"Our Customs Intelligence Platform enabled us to identify areas where we could save Mazda money in its operations within the Oceania region,” Morcom said.
“Not only did our team help Mazda cut costs through streamlined operations, but we were also able to identify where costs could be recouped from previous payments made within its supply chain.
“The Customs Intelligence Platform helped us to optimise customs operations for Mazda helping to drive cost savings,” said Morcom.
In the first 12 months, the negotiated rates resulted in significant ocean savings and a 23% reduction in air freight costs on imports into Australia.
With $28 billion in freight under management and 20 million shipments annually, C.H. Robinson is one of the world’s largest logistics platforms.